FMCG index hits 52-week low; Patanjali, Godrej Cons, HUL, ITC down up to 3%
Thus far in the calendar year 2026, the BSE FMCG index has underperformed the market by falling 7 per cent, as against 4.8 per cent decline in the BSE Sensex.
 "FMCG index hits 52-week low; Patanjali, Godrej Cons, HUL, ITC down up to 3%")
FMCG index movement today
BSE (fast moving consumer goods) FMCG index at 18,061.74 and the Nifty FMCG index at 49,336.50 fell ) fell 1.5 per cent each, and hit respective 52-week lows on the bourses amid a continued decline in the stock price of ITC and other FMCG stocks. In fact, the BSE FMCG index hit its lowest level since May 2023 in intra-day deals.
At 12:21 PM; BSE FMCG and Nifty FMCG had recouped losses from their respective intra-day lows and were trading on a flat note, as compared to 0.5 per cent rise in the BSE Sensex and 0.28 per cent gain in the Nifty 50.
Thus far in the calendar year 2026, the BSE FMCG index has underperformed the market by falling 7 per cent, as against 4.8 per cent decline in the BSE Sensex.
Hindustan Unilever (HUL), ITC, Radico Khaitan, Godrej Consumer Products, Varun Beverages, Dabur India and Marico from the Nifty FMCG index were down in the range of 2 per cent to 3 per cent in intra-day trade. Meanwhile, ITC, Emami, Pantanjali, VST Industries and Jyothy Labs hit their respective 52-week lows.
Why did FMCG index underperform market?
Among individual stocks, ITC hit a multi-year low at ₹302, down 2.5 per cent on the BSE in intra-day deals. The stock price of the second most-valued FMCG stock after HUL, was quoting at its lowest level since July 22 (unadjusted to demerger of ITC Hotel biz), the BSE data shows.
Thus far in the calendar year 2026, ITC has underperformed the market by falling 15 per cent, while HUL share price was up 1 per cent.
ITC is diversified consumption play with presence in businesses such as cigarettes, FMCG, Agri and Paperboard, Paper & Packaging in India.
Significant tax hike in cigarettes and its expected impact on the ITC’s cigarette business in the coming quarters will continue to put on the valuations of the company, fear analysts.
According to analysts at Axis Securities, the unprecedented tax hike brings to an end a five-year period of relative stability during which the legal cigarette market had regained share, leading to market contraction. With legal prices now poised to rise sharply, the price arbitrage between tax-paid and smuggled brands is set to widen significantly. This widening gap is expected to drive meaningful volume migration towards other brands, potentially reversing several years of gains achieved by organised players. However, the company will continue to invest in its powerful trademarks and well-laddered product portfolio, innovation capacity, manufacturing excellence and integrated seed-to-smoke value chain, the brokerage firm said.
Analysts believe ITC’s long-term growth trajectory remains intact, with non-cigarette business segments maintaining steady progress. Cigarette volumes will be impacted in the medium term due to an increase in the tax rate. The legal cigarette industry continues to engage with policymakers on taxation policies that balance the country's economic imperatives and tobacco control objectives. The government budgetary measures, the recent GST rate reduction, an expanding outlet network, localisation initiatives, and a continued premiumisation focus are expected to further drive overall growth in FY27, it added.
Union Budget 2026-27
Government has proposed dedicated programs to support high-value crops such as coconut, cashews, walnuts, almonds, pine nuts, and sandalwood across India. The initiatives are to diversify farm outputs, increase productivity, enhance farmers' incomes, and create new employment opportunities. To further enhance competitiveness in coconut production, the finance minister proposed a coconut promotion scheme to increase production and enhance productivity through various interventions, including replacing non-productive trees with new saplings, or varieties in major coconut-growing states.
Self dependency on some of the high value crops will have higher yield and better production of copra in the coming years. This will lead to increasing supply of copra of hair oil companies and support margins in the long run. This is positive for companies such as Marico, Bajaj Consumer Care and Dabur India, ICICI Securities said in a note. ================================== Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.